Revised Fixed Deposit Rates Among Local Banks as on 1/5/2010

Hey, dear readers! Do you notice that the rates of fixed deposit among local banks had changed since early of March? The revised of the rates was not something unpredictable as the rates as on previous year was way too low with the lowest of 2.00% for 1 month. Correct me if I was wrong, the rate was the lowest ever recorded in history perhaps.

I only noticed the changes towards the end of March when I browse through Maybank2u.com to update my account. After some findings, then only I realised the changes have been made since early of March. In addition, CIMB Bank had actually revised the rates twice and the latest rates is effective from 23 March 2010.

Now, let's have a look on the most updated current rates as on 1 May 2010. Hey, it's LABOUR DAY!! Wishing everyone a HAPPY HOLIDAY! For those who still need to work today, hey, no worry, it's double payments right?

As seen from the above, overall the fixed deposit rates are almost similar among the stated 4 local banks namely Public Bank, Maybank, AmBank and CIMB Bank. The rates start to differ for tenure more than 1 years with CIMB seem to offer more attractive rates. 

You must be wondering how come the Public Bank rates are actually way higher than the rest. Well, I was SHOCKED too. First of all, check the effective date. It was newly revised just a day ago, yea yesterday. So, I am glad to provide you the most updated rates. Previously, as in before 30/4/2010, the rates were similar to other local banks as well. With this newly revised rates, I am predicting that the other banks will do the same probably within this month and of course not today, it's a HOLIDAY! As a consumer, it is a good sign to us as when the rates increases, we will benefit from the increment. As for businesses, competition is good and definitely other banks will revise their rates to make sure their rates is competitive enough.

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If you want to maximise your investment, you need to follow the rates frequently. For example, if previously, the rates for 1 month is 2.0% and the rates for 2 months is 2.05% and I was subscribing for 2 months tenure, I should subscribe for 1 month with newly revised 2.25% instead of continuing 2 months tenure as both rates are the same. Get it? Putting FD more than 3 months is generally not advisable because you will probably get the same rates up to 11 months. With the rates being revised frequently, I would suggest to put at 3 months and not more than that. That was just my unprofessional point of view. 

So, how do you actually calculate the income? Does it means that 2.0% for 1 month means you will get RM 20 for deposit of RM 1000 per month? You are absolutely wrong but I was in your shoe before. You will get RM 20 but it was per year income and hence for each month, you will get RM 20/12 = RM 1.667.

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The income might seem low but that was better than nothing. If you want to get a higher income, you must have a higher input as well. Do you realised that savings account in any of the local banks was previously rated ZERO for saving up to RM 10,000. The rates of course differ among various banks.  As for now, I  had checked various banks and they started to pay about 0.25% for savings up to RM 10,000. Hence, it got me agitated when I was actually saving my money in the bank  previously WITHOUT any dividend payout. To make thing worse, I need to pay RM 8 for annual fees even though I did not use the ATM card service. Sounds pretty unfair right? Hence, lets say if you thousands in your saving. You may probably need to put  a minimum of RM 1000 into fixed deposit account and earn RM 22.50 (for the newly revised rate of 2.25%) to pay for the 'useless, retarded' RM 8 compulsory fees per year.

Some of you may found it troublesome for the hassle to go to bank, queue up and register a fixed deposit income. You may probably think that it was unsafe to have a piece of the FD certificate and have no idea where to place this cerficate safely so that you can reclaim the money when the tenure expired. If you have this general perception, then you are totally 'ketinggalan zaman'. In this new technology era, everything can be done via computer and right from the desktop of your room or your laptop at anytime and anywhere.

This is known as e-fixed deposit. As for now, I think Maybank2u.com provides the best site as it is most convenience and hassle free of which I am using now. What I need to do is simply type in the amount I wanted to invest and the tenure, then press click. After that, the transactions will be confirmed on the next working day if this is your first time transaction. As for me who are a frequent user, I can made my transaction in REAL TIME and if not mistaken up to 10 pm daily. Actually, all transactions after the first one will be made in real time which means that it will be automatically inserted into the databases and you start earning from that particular time. If not mistaken too, the transactions are valid even during public holidays or weekends of which the starting day is counted from the time you make the transactions. 

As a comparison to other e-fixed deposit offered by other banks, lets say Public Bank, if not mistaken, you will need to make the transactions at the ATM machine. I am not sure on the procedures on reclaiming the money once the tenure expired.

However, for Maybank2u.com, what you need to do when at anytime you think that you wanted to withdraw the money for emergency cases even though the tenure is yet to be expired, you can do it again with your own desktop or laptop. Withdrawal through e-fixed deposit does not impose any charges and changes are made with immediate effect. It means that the money will be credited back to your savings account as soon after you had successfully done with the withdrawal process. It is just a few simple basic steps. Easy right?

As a conclusion, manage your assets well. You wouldn't want to lose any $$ incentives when you can actually earn them easily. Of course, if you are looking for higher investment return, you may look for stock markets, unit trust or currency exchange. Touching on unit trust, I am yet to claim my Amanah Saham Malaysia dividends. The dividend was 6.3% for the financial year ended on 31st March 2010. That was actually not bad although the rates was 6.8% for 2007 and 7.8% for 2008. Judging based on the economic status last year, dividend more than 6% is actually hit the expected return and additional 0.3% is just nice.

(Image source: Google)

Good luck and happy investing. No holiday for me today as I need to prepare for my exams. Sigh~.